{"id":6678,"date":"2023-01-10T08:20:09","date_gmt":"2023-01-10T14:20:09","guid":{"rendered":"https:\/\/schenkelberg.investments\/?p=6678"},"modified":"2023-01-10T08:32:00","modified_gmt":"2023-01-10T14:32:00","slug":"__trashed-3","status":"publish","type":"post","link":"https:\/\/schenkelberg.investments\/?p=6678","title":{"rendered":"Market Update. 4th Quarter 2022"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Index<\/strong><\/td>Fourth Quarter 2022<\/strong><\/td>Year          To-Date 2022<\/strong><\/td><\/tr>
S&P 500<\/td>7.1%<\/td>-19.5%<\/td><\/tr>
Dow Jones Industrial Average<\/td>15.3%<\/td>-8.8%<\/td><\/tr>
Russell 2000<\/td>5.8%<\/td>-21.6%<\/td><\/tr>
 <\/td><\/td> <\/td><\/tr>
MSCI EAFE (International Index)<\/td>17.7%<\/td>-14.4%<\/td><\/tr>
 <\/td><\/td> <\/td><\/tr>
Barclays Aggregate Bond<\/td>1.6%<\/td>-13.0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Performance Source: Koyfin<\/em><\/p>\n\n\n\n

U.S. Versus International<\/strong><\/p>\n\n\n\n

The S&P 500, an index of large U.S. companies, posted a total return of 7.1% for the Fourth Quarter of 2022. U.S. stocks lagged international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE total return for the Fourth Quarter of 2022 was 17.7%.<\/p>\n\n\n\n

The U.S. Dollar weakened throughout the quarter as indicators show that the pace of interest rate increases by the U.S. Federal Open Market Committee may slow. On the flip side, the European Central Bank is looking at further tightening and balance of rising rates while being cognizant of growth. When the dollar declines, assets priced in foreign currencies, such as international stocks, rise in value.<\/p>\n\n\n\n

For the full year, U.S. stocks marginally outperformed international. The S&P 500 Index reported total return of -19.5% for 2022 while the international MSCI EAFE ETF had a total return of -21.6%. The best performing countries of 2022 included Turkey, Chile, Brazil and Argentina–all countries that benefit from a positive environment for commodity prices. Commodities performed very well in 2022 due to high inflation.<\/p>\n\n\n\n

<\/h2>\n\n\n\n

U.S. Sectors<\/strong><\/p>\n\n\n\n

Top performing U.S. S&P 500 sectors as reported by Koyfin for the Fourth Quarter of 2022 by total return include Energy (22.7%), Industrials (19.1%) and Materials (15.0%). Laggards for the Fourth Quarter include Consumer Discretionary (-9.1%), Communications (0.5%) and Real Estate (3.7%).<\/p>\n\n\n\n

Top performing S&P 500 sectors as reported by Koyfin for the full year 2022 include Energy (64.3%), Utilities (1.4%) and Consumer Staples (-0.8%). Laggards for 2022 include Communications (-37.6%), Consumer Discretionary (-36.3%) and Technology (-27.7%).<\/p>\n\n\n\n

Fourth quarter performance favored more stable sectors such as Energy and Industrials that may not be as impacted by a recession in 2023. Inflation fears started to decline as the year over year pace slowed. However, inflationary fears are being replaced with threats of recession. As earnings reports roll in for the fourth quarter we\u2019ll have better clarity regarding the possibility of a recession and how much is already priced into current stock prices.<\/p>\n","protected":false},"excerpt":{"rendered":"

Index Fourth Quarter 2022 Year          To-Date 2022 S&P 500 7.1% -19.5% Dow Jones Industrial Average 15.3% -8.8% Russell 2000 5.8% -21.6%     MSCI EAFE (International Index) 17.7% -14.4%     Barclays Aggregate Bond 1.6% -13.0% Performance Source: Koyfin U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"\n

<\/p>\n\n\n\n

Index<\/strong><\/td>Fourth Quarter 2022<\/strong><\/td>Year          To-Date 2022<\/strong><\/td><\/tr>
S&P 500<\/td>7.1%<\/td>-19.5%<\/td><\/tr>
Dow Jones Industrial Average<\/td>15.3%<\/td>-8.8%<\/td><\/tr>
Russell 2000<\/td>5.8%<\/td>-21.6%<\/td><\/tr>
 <\/td><\/td> <\/td><\/tr>
MSCI EAFE (International Index)<\/td>17.7%<\/td>-14.4%<\/td><\/tr>
 <\/td><\/td> <\/td><\/tr>
Barclays Aggregate Bond<\/td>1.6%<\/td>-13.0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Performance Source: Koyfin<\/em><\/p>\n\n\n\n

<\/p>\n\n\n\n

U.S. Versus International<\/strong><\/p>\n\n\n\n

The S&P 500, an index of large U.S. companies, posted a total return of 7.1% for the Fourth Quarter of 2022. U.S. stocks lagged international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE total return for the Fourth Quarter of 2022 was 17.7%.<\/p>\n\n\n\n

The U.S. Dollar weakened throughout the quarter as indicators show that the pace of interest rate increases by the U.S. Federal Open Market Committee may slow. On the flip side, the European Central Bank is looking at further tightening and balance of rising rates while being cognizant of growth. When the dollar declines, assets priced in foreign currencies, such as international stocks, rise in value.<\/p>\n\n\n\n

For the full year, U.S. stocks marginally outperformed international. The S&P 500 Index reported total return of -19.5% for 2022 while the international MSCI EAFE ETF had a total return of -21.6%. The best performing countries of 2022 included Turkey, Chile, Brazil and Argentina--all countries that benefit from a positive environment for commodity prices. Commodities performed very well in 2022 due to high inflation.<\/p>\n\n\n\n

<\/h2>\n\n\n\n

U.S. Sectors<\/strong><\/p>\n\n\n\n

Top performing U.S. S&P 500 sectors as reported by Koyfin for the Fourth Quarter of 2022 by total return include Energy (22.7%), Industrials (19.1%) and Materials (15.0%). Laggards for the Fourth Quarter include Consumer Discretionary (-9.1%), Communications (0.5%) and Real Estate (3.7%).<\/p>\n\n\n\n

Top performing S&P 500 sectors as reported by Koyfin for the full year 2022 include Energy (64.3%), Utilities (1.4%) and Consumer Staples (-0.8%). Laggards for 2022 include Communications (-37.6%), Consumer Discretionary (-36.3%) and Technology (-27.7%).<\/p>\n\n\n\n

Fourth quarter performance favored more stable sectors such as Energy and Industrials that may not be as impacted by a recession in 2023. Inflation fears started to decline as the year over year pace slowed. However, inflationary fears are being replaced with threats of recession. As earnings reports roll in for the fourth quarter we\u2019ll have better clarity regarding the possibility of a recession and how much is already priced into current stock prices.<\/p>\n","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[119],"tags":[],"class_list":["post-6678","post","type-post","status-publish","format-standard","hentry","category-market-commentary"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7kXxe-1JI","jetpack-related-posts":[{"id":6571,"url":"https:\/\/schenkelberg.investments\/?p=6571","url_meta":{"origin":6678,"position":0},"title":"Market Update – Third Quarter 2021","author":"J.J. Schenkelberg, CFA","date":"October 15, 2021","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 0.6% for the Third Quarter of 2021. S&P 500 performance was driven by strength in select stocks with large weights in the index. U.S. stocks outperformed international again for the quarter as measured\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6765,"url":"https:\/\/schenkelberg.investments\/?p=6765","url_meta":{"origin":6678,"position":1},"title":"U.S. Versus International\/U.S. Sectors","author":"J.J. Schenkelberg, CFA","date":"July 10, 2024","format":false,"excerpt":"IndexSecond Quarter 2024Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2024S&P 5003.9%14.5%Dow Jones Industrial Average-1.7%3.8%Russell 2000-3.9%0.8%\u00a0\u00a0MSCI All Country World Index ex-US1.0%5.6%\u00a0\u00a0Aggregate Bond0.1%-0.6% Performance Source: Koyfin Price Return U.S. Versus International The S&P 500 Index, an index of large U.S. companies, posted a price return of 3.9% for the Second Quarter of 2024. Large U.S. stocks outperformed\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6506,"url":"https:\/\/schenkelberg.investments\/?p=6506","url_meta":{"origin":6678,"position":2},"title":"Market Update – First Quarter 2020","author":"J.J. Schenkelberg, CFA","date":"April 3, 2020","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of -19.9% for the First Quarter of 2020. U.S. stocks marginally outperformed international for the quarter as measured by the iShares MSCI EAFE ETF, a representation of international stocks outside the U.S. EAFE. Total\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6528,"url":"https:\/\/schenkelberg.investments\/?p=6528","url_meta":{"origin":6678,"position":3},"title":"U.S. Stocks Dominate","author":"J.J. Schenkelberg, CFA","date":"October 12, 2020","format":false,"excerpt":"Last quarter we discussed how the largest stocks in the Standard & Poor\u2019s 500 Index are dominating stock market returns, helping drive S&P 500 returns versus stocks in the rest of the index and other major indices. Apple and Amazon continued to outperform in the third quarter with total returns\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/schenkelberg.investments\/wp-content\/uploads\/2020\/10\/International-v.-u.s.-093020.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":6798,"url":"https:\/\/schenkelberg.investments\/?p=6798","url_meta":{"origin":6678,"position":4},"title":"US VS International\/US Sectors","author":"J.J. Schenkelberg, CFA","date":"January 9, 2025","format":false,"excerpt":"IndexFourth Quarter 2024Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To-Date 2024S&P 5002.1%23.3%Dow Jones Industrial Average0.5%12.9%Russell 20000.0%10.0%\u00a0\u00a0MSCI All Country World Index ex-US-7.5%5.2%\u00a0\u00a0Aggregate Bond-3.1%1.4% Performance Source: Koyfin.com Price Return U.S. Versus International The S&P 500 Index, an index of large U.S. companies, posted a price return of 2.1% for the Fourth Quarter of 2024. Large U.S. stocks strongly\u2026","rel":"","context":"In "Market Commentary"","block_context":{"text":"Market Commentary","link":"https:\/\/schenkelberg.investments\/?cat=119"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6182,"url":"https:\/\/schenkelberg.investments\/?p=6182","url_meta":{"origin":6678,"position":5},"title":"Market Performance Breakdown – Fourth Quarter 2017","author":"J.J. Schenkelberg, CFA","date":"January 9, 2018","format":false,"excerpt":"U.S. Versus International The S&P 500, an index of large U.S. companies, posted a total return of 21.8% for 2017 and 6.6% for the 13 weeks ending December 31, 2017. 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